Latrobe, PA-based Kennametal shared its 2016 third quarter fiscal results on Tuesday, led by a 22 percent decrease in sales year-over-year, but a solid profit rebound.
The company posted Q3 sales of $497.8 million, with organic sales down 8 percent from a year earlier. Kennametal turned a profit of $16 million, far above a $46.2 million loss a year earlier.
The tooling company was able to adjust to weakened product demand by cutting expenses 12.3 percent year-over-year. Kennametal's cost-reduction actions are set to produce $46 million in savings by June 30, when the fiscal year ends.
Kennametal's Q1 Industrial segment sales decreased 11 percent year-over-year, with organic sales down 5 percent. Infrastructure segment sales sunk 36 percent, with organic sales down 12 percent.
For the first nine months of fiscal 2016, Kennemetal sales were down 22 percent from 2015, with organic sales down 12 percent. The company had a loss of $159.5 million, compared to a $395 million loss a year earlier.
Year-to-date, Kennametal reported sales of $1.6 billion, down 22 percent from the same period a year ago, with a 12 percent organic decline. The company reported a loss of $159.5 million, compared to a loss of $395 million in the first nine months of fiscal 2015.
"We have a lot of improvement opportunities within Kennametal to simplify operations, lower costs and drive margin improvements over time," said Ron De Foe, Kennametal president and CEO. "We need to be more customer responsive and grow market share with innovation, entrepreneurship and speed — all things we are working on and plan to discuss with the investment community in the future."
